We're in a bit over our head here.

You should have at least 20% for the down payment and 6 months of reserves. 

By parking your profits in these designated areas, you can delay and maybe even shave off some  capital gains taxes.

That I’m not wasting my time looking into the possibilities that exist.Long story short, I’ve inherited part ownership in a rental property passed down from my grandparents.

I don’t want to be chained down by the 9-5 that I have been working since I have been 16.

Take this post down before more people see how ignorant you are.

The exception would be if this was already permitted for STR - short term rentals VRBO then it might be worth it based on location.If you just want to buy a home and have a unit to help cover the mortgage I would still insist on lower price point or NO HOA to help get the total mortgage down so that the other unit covers 50% of the overall payment.  

But this model would help in getting together the necessary funds (especially for a down payment and minimizing the potential interest on a loan), while bringing in legal complexity.

Save more money too you will need reserves even if you can get a low/no money down option.

Debt is not a bad thing, and you can always use the additional cash flow from a property to pay it down quickly if that is part of your goal.